The 29-year-old is out of contract in the summer and the club have announced his departure as they look to rebuild following relegation from the Barclays Premier League.

The Scotland international will follow Steven Reid out of Turf Moor after the defender announced his retirement earlier this week.

But long-serving midfielder Michael Duff could stay on after the Clarets confirmed they will begin discussions with the 37-year-old over a new deal.

Wallace, a former Celtic trainee signed from Preston five years ago, has made 165 appearances and scored 13 times for the club. He has played 15 times in the Premier League this season, finding the net twice.

Wallace said: "It's a sad day for me to be leaving Burnley. I have thoroughly enjoyed five terrific years at the club and made many friends."

Duff, who is in his testimonial season, joined Burnley for £30,000 from Cheltenham in 2004. He has played in each of the top eight tiers of English football across his career.

Manager Sean Dyche said: "With the outcome of the season now clear we have met with the players to put them in the picture.

"Ross will be leaving and, of course, we thank him for his contribution to the club and we wish him well in the future."

Burnley travel to Aston Villa for their final game of the season on Sunday.